EUR/USD and GBP/USD fall sharply, as USD/JPY edges up

The outbreak of risk aversion in markets has hit EUR/USD and GBP/USD hard.

Transcript

EUR/USD targets August low

EUR/USD has almost completed its return to the August low, giving back almost all the ground gained since then.

The sellers have put the bearish view back on the front foot and how we look for a renewed decline below the August low around $1.167 that will create a lower low and revive the downtrend.

GBP/USD firmly in retreat

The bounce in the pound against the dollar seems to have run its course, and with Friday having seen the GBP/USD price drop below trendline support the sellers are now firmly in charge.

Further declines head towards $1.366 and then $1.36.

USD/JPY edges towards top of range

With USD/JPY, the dollar is still stuck in a range against the yen, since over the past three months dips below ¥109.50 have found buyers while rallies above ¥110.50 tend to run out of momentum.

At present the buyers are in the ascendant, but it looks like a low-conviction move for the time being.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.